Wendy’s remakes its burger

But Wendy’s acknowledges that remaking a burger that’s been around for more than four decades isn’t easy.

The company in July sued a group of franchisees who refused to install the toasters needed to make the buns for the new burger. Each restaurant was asked to install two toasters, at a cost of $5,000 to $6,000 per restaurant. Locations with older grills had to replace those too, at a cost of about $15,000.

But the franchisees, who own or have stakes in more than 300 of the 5,200 franchise locations, say that Wendy’s hasn’t addressed their concerns about the safety of the toasters. The suit’s two lead franchisees, whose pictures hang on a “Hall of Fame” in the headquarters’ front lobby, say that employees could burn or cut themselves while using the toasters. The suit is still pending.

Wendy’s also faces the reality that some customers may not like the new burger — or its price. At a time when Americans are cutting back in the down economy, Wendy’s says prices for the burgers will probably increase, maybe by 10 or 20 cents, because of the higher-quality ingredients. Franchisees set their own prices, though. A Wendy’s down the road from the Dublin headquarters, which was already selling the new sandwiches last week, was charging $3.49 for the quarter-pound burger, $4.69 for the half-pound, and $5.79 for the three-quarters pound.

Wendy’s officials say complaints about the new burger are inevitable. After all, the company was bombarded with complaints for three or four weeks last year when it made changes to the fries, including flavoring them with sea salt. But Lynch said fry sales eventually went up and “exceeded expectations,” although he declined to give figures. He also said the new burger “speaks for itself.”

Analysts, meanwhile, are mixed on their views of the potential effect of the new burger. “It probably would have been a bigger deal if it had happened a lot sooner,” said Bob Goldin, an executive vice president at Technomic. “It’s still a big chain but it’s got so much catching up (to do).”

Jeff Davis, at research firm Sandelman & Associates, said Wendy’s still has a long-term reputation for quality and credibility that it can harvest. “If they can hit those buttons, it’s going to work for them,” he said.

For its part, Wendy’s is hoping the burger will be one of many successful changes at the chain. Wendy’s, which just got a new CEO last week, wants to expand overseas and on the West Coast, relaunch a breakfast line that’s easier for on-the-go eating, and sell more high-margin snacks and beverages.